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Gold set for biggest yearly loss for three decades

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Gold is on course to record its worst year for more than three decades following huge falls over 2013.

The precious metal has fallen 30% in value during 2013, from a peak of $1,693 in January to a low of $1,188 in December.

It has climbed marginally off lows in the last few sessions, currently trading at $1,204, but unless it stages a massive rally in the next two days it will have seen its worst year in terms of performance since 1981.

Throughout the year, the improvement in the global economy has pushed the price of gold down as investors ditched the precious metal – which pays no yield – in favour of equities.

The decision by the U.S. Federal Reserve to begin tapering its $85 billion in monthly bond purchases next month put further pressure on the gold price recently, causing it to fall below $1,200.

It has been a dramatic end for a commodity which has been in a bull market for 12 years thanks to rock-bottom interest rates and measures taken by global central banks to prop up the economy.

At its current price of $1,204, gold is 37% below its all time high of $1,920 hit in 2011.

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